Homework Help is Here – Start Your Trial Now!
Business
Finance
1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 91% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 115% of book value. 6. Machinery and equipment can be liquidated at 72% of book value. 7. Cash and marketable securities can be liquidated at book value. i Data Table - X Given this information, answer the following: Gallinas Industries Balance Sheet December 31 a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? Assets Liabilities and Stockholders' Equity a. Gallinas Industries' book value per share is $. (Round to the nearest d $ 30,000 Cash Accounts payable 46,530 Marketable securities 46,530 Notes payable 41,360 41,360 Accounts receivable 77,550 Accrued wages 56,870 $ 129,250 Inventories Total current liabilities $ 210,950 $ 139,590 Total current assets Long-term debt Land and buildings (net) $ 114,769 Preferred stock 62,040 191,281 Machinery and equipment Common stock (10,000 shares) 108,570 Total fixed assets (net) $ 306,050 Retained earnings 77,550 $ 517,000 $ 517,000 Total assets Total liabilities and stockholders' equity

1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 91% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 115% of book value. 6. Machinery and equipment can be liquidated at 72% of book value. 7. Cash and marketable securities can be liquidated at book value. i Data Table - X Given this information, answer the following: Gallinas Industries Balance Sheet December 31 a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? Assets Liabilities and Stockholders' Equity a. Gallinas Industries' book value per share is $. (Round to the nearest d $ 30,000 Cash Accounts payable 46,530 Marketable securities 46,530 Notes payable 41,360 41,360 Accounts receivable 77,550 Accrued wages 56,870 $ 129,250 Inventories Total current liabilities $ 210,950 $ 139,590 Total current assets Long-term debt Land and buildings (net) $ 114,769 Preferred stock 62,040 191,281 Machinery and equipment Common stock (10,000 shares) 108,570 Total fixed assets (net) $ 306,050 Retained earnings 77,550 $ 517,000 $ 517,000 Total assets Total liabilities and stockholders' equity

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
Book and liquidation value The balance sheet for Gallinas Industries is as follows, . Additional information with respect to the firm is available: 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 91% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 115% of book value. 6. Machinery and equipment can be liquidated at 72% of book value. 7. Cash and marketable securities can be liquidated at book value. - X Data Table Given this information, answer the following: Gallinas Industries Balance Sheet December 31 a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? Assets Liabilities and Stockholders' Equity a. Gallinas Industries' book value per share is $ (Round to the nearest Cash 2$ 30,000 Accounts payable 2$ 46,530 Marketable securities 46,530 Notes payable 41,360 77,550 Accrued wages 41,360 Accounts receivable 56,870 $ 129,250 Inventories Total current liabilities $ 210,950 Long-term debt $ 139,590 Total current assets Land and buildings (net) $ 114,769 Preferred stock $ 62,040 Machinery and equipment 191,281 Common stock (10,000 shares) 108,570 Total fixed assets (net) $ 306,050 Retained earnings 77,550 $ 517,000 $ 517,000 Total assets Total liabilities and stockholders' equity
Transcribed Image Text:Book and liquidation value The balance sheet for Gallinas Industries is as follows, . Additional information with respect to the firm is available: 1. Preferred stock can be liquidated at book value. 2. Accounts receivable and inventories can be liquidated at 91% of book value. 3. The firm has 10,000 shares of common stock outstanding. 4. All interest and dividends are currently paid up. 5. Land and buildings can be liquidated at 115% of book value. 6. Machinery and equipment can be liquidated at 72% of book value. 7. Cash and marketable securities can be liquidated at book value. - X Data Table Given this information, answer the following: Gallinas Industries Balance Sheet December 31 a. What is Gallinas Industries' book value per share? b. What is its liquidation value per share? Assets Liabilities and Stockholders' Equity a. Gallinas Industries' book value per share is $ (Round to the nearest Cash 2$ 30,000 Accounts payable 2$ 46,530 Marketable securities 46,530 Notes payable 41,360 77,550 Accrued wages 41,360 Accounts receivable 56,870 $ 129,250 Inventories Total current liabilities $ 210,950 Long-term debt $ 139,590 Total current assets Land and buildings (net) $ 114,769 Preferred stock $ 62,040 Machinery and equipment 191,281 Common stock (10,000 shares) 108,570 Total fixed assets (net) $ 306,050 Retained earnings 77,550 $ 517,000 $ 517,000 Total assets Total liabilities and stockholders' equity
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 5 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Earning per share and Dilutive securities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS